Prop Firm Rules
FTMO Challenge
Upload your trade history and see your probability of passing the FTMO evaluation before you spend $300–$600.
2-Step Standard
| Daily Loss Limit | 5% |
| Daily Loss Base | Midnight balance (dynamic floor) |
| Max Drawdown | 10% from initial (static) |
| Profit Target | 10% (Phase 1), 5% (Phase 2) |
| Time Limit | Unlimited |
| Min Trading Days | 4 |
| Daily Reset | Midnight CEST |
1-Step
| Daily Loss Limit | 3% |
| Daily Loss Base | Midnight balance |
| Max Drawdown | 6% |
| Profit Target | 10% |
| Time Limit | Unlimited |
| Min Trading Days | 2 |
| Daily Reset | Midnight CEST |
How FTMO's Daily Loss Works
FTMO's daily loss limit is calculated from your balance at midnight CEST. This creates a "dynamic floor" — as your balance grows, the absolute dollar amount of allowable daily loss increases.
This is the #1 reason traders fail FTMO. They approach the daily limit without realizing it because they're tracking percentage from initial balance, not from the midnight snapshot. PropSim tracks this exactly.
What PropSim Checks for FTMO
- Daily loss from midnight CEST balance (including open trade floating P&L)
- Maximum drawdown from initial balance (static, never resets)
- Profit target achievement within the time window
- Minimum trading days requirement (4 for 2-Step, 2 for 1-Step)
- Behavioral patterns that compound risk: revenge trading, overtrading, tilt episodes
Rules verified from FTMO Academy as of March 2026. Always confirm current rules directly with FTMO before purchasing a challenge.